Sharjah SAIF-Zone a gateway for Indian MSMEs

The Dollar Business Bureau

The Federation of Indian Export Organizations (FIEO) said small and medium-sized enterprises (SMEs) can leverage Sharjah-based SAIF Zone & Hamriya Free Zone as a gateway to African and European markets. FIEO further said that tax-free export zone would offer immense global opportunities for SMEs in Andhra Pradesh (A.P). 

FIEO in association with SAIF Zone and AP Chamber of Commerce and Industry Federation (APCCIF), jointly organised a seminar at Vijayawada to help MSMEs in agriculture marketing, food processing and textile products in West Asia and in the North African (WANA) region.  The seminar discussed various opportunities available to the exporters for exporting not only to GCC countries, but also to Africa and CIS by using SAIF Zone as the hub. 

Unni Krishnan, Joint Deputy Director, FIEO, said: “AP is progressing in marine, agricultural, textile and granite products, but lagging behind in exports. With Rs.36,500 crore exports, A.P accounted for only two percent of the total country's exports during 2015-16. FIEO is providing the necessary marketing support to AP industry to increase its share to 5% within three years. “ 

Sharjah-based SAIF Zone and Hamriya Free Zone offers 100 percent tax exemption including income-tax and corporate tax. 

H.E Saud Salim Al Mazrouei, Director SAIF Zone and Hamriya Free Zone, said: "AP can leverage UAE particularly Sharjah SAIF Zone as re-export base for Africa and Europe.” 

Potluri Bhaskara Rao, General Secretary, APCCIF, said that Sharjah market has good demand for agricultural, marine and textiles products. 

Andhra Pradesh has vast export potential in marine products, food processing, textiles and granite sectors. FIEO has projected exports of marine products at Rs.15,000 crore for the current fiscal as against Rs.16,000 crore in the previous financial year. 

Al Mazrouei further said, “There is a significant demand for Indian Products in UAE and in GCC markets and suggested the Indian exporters to utilise the opportunity.  Following the emergence of UAE as a major re-export centre, India is the third largest investor in UAE. There are many promising opportunities and incentives in SAIF Zone for Indian companies that an investor can enjoy.” 

Several global majors and SMEs are operating in the Middle East and have made SAIF-Zone as their base. AP-based SMEs will benefit from the added personal, corporate and competitive advantage of 100 percent foreign ownership in SAIF zone, he added. 

“UAE has negligible import duty and most of the food and agri products have zero duty. There is also no personal income tax in the country and this attracts industries across the globe, “ Al Mazrouei said. 

Considering the immense opportunities for AP exporters to expand their presence in UAE, the AP government is making all efforts to promote industries in the state and in a short span of time the state has become an ideal destination for industries, Bhaskara Rao said. 

India accounted for a mere 1.67% of the global trade in 2015-16. Smaller countries like Malaysia and Singapore contribute about 5% to the global trade. Despite FTAs with 27 countries, India has failed to increase its share in global trade.